What is a split loan option?


What is a split loan option? A split loan option permits our customers
to split a farm loan into two or three parts. The split loan option allows customers a combination
of lower interest expense, like shorter term rates provide, yet security of long term rates.
For example, a customer might elect to place half of their farm mortgage on a variable
rate loan product and the other half on a longer-term fixed rate option. Using this
approach a customer benefits from a lower weighted average interest rate on the total
mortgage, but also provides security against rising rates, which creates an interest rate
hedge. Call your local Farm Plus Financial representative to discuss your farm loan options. Call your local Farm Plus Financial representative
at 866.929.5585 to discuss your options or visit us online at http://www.farmloans.com.

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